Govt. slashes taxes to reduce CoL

Wednesday, 2 August 2017 00:00 - - {{hitsCtrl.values.hits}}

Import taxes and levies on 47 essential items reduced, rice to be imported to offset shortages

The Finance Ministry yesterday reduced several import taxes and other levies on 47 essential items in an effort to reduce the cost of living while also outlining plans to import rice to offset any local market shortages.

The Government has also decided to distribute a package of essential goods worth Rs. 5,000 to drought victims over the next two months. The special commodity levy on rice imports, which was earlier Rs. 5 per kilo, has been reduced to 50 cents and will be in force till December 2017. Taxes on imported fresh fish have been slashed by Rs. 50 as well and will be valid for the next three months.

From Tuesday the Finance Ministry removed all taxes on maize imports and instead imposed one Rs. 10 tax on each kilo of maize, which has been a spike in imports despite lower prices. Several taxes including CESS, nation building tax and VAT meant as much as Rs. 60 of each kilo went to taxes. The simplifying of the taxes is expected to reduce prices for the poultry industry.

CESS on a kilogramme of imported flour has been reduced from Rs. 25 to Rs. 10. Raw wheat import taxes have also been reduced by Rs. 3. The taxes on 47 essential goods that have been reduced will be re-imposed depending on the needs of local farmers and internal conditions, Finance Minister Mangala Samaraweera told reporters.

“In addition to these measures, the Government Cost of Living Committee also decided to import rice. An estimated 50,000 MT will be initially imported with more to be brought as necessary. The private sector will also increase imports as necessary,” he said.

Officials of the Trade Ministry who were also present at the COI Committee meeting at the Finance Ministry assured there would be no rice shortages and prices would remain affordable for the public. (UJ)

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